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Matsushita to Expand Air-Conditioner Output in China
Dec 6, 2004
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Japan-based Matsushita Electric Industrial Co. announced that it is moving to increase production of home air conditioners in China, according to the Nihon Keizai Shimbun.

The business daily said a joint venture based in the southern city of Guangzhou, Guangzhou Matsushita Air-Conditioner Co, will build a second factory to increase capacity by 60 percent to 3.5 million home air-conditioners a year. Additionally, production efficiency at the existing plant will be boosted by more than 30 percent.

The new factory will make larger models starting in May 2005, while the existing plant will concentrate on making smaller models. The company will invest around 1.5 billion yen (approx. U.S. $14.6 million) on the expansion.

Production this year is projected to reach 2.2 million units, making it the Matsushita group's largest air conditioner manufacturing site, with output expected to reach 3 million by 2006. (AFX)

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